Time for your cheat sheet on this week’s top stories. Canadian Real Estate What Canadian Real Estate Correction? Detached Market Surges Up To $52k Higher Canadian real estate is showing signs of a firming market. The price of a typical single-family home across Canada fell 1.2% to $748,800 in December. Five markets bucked the trend, […]
Canadians are bracing themselves for the impact of higher interest rates. This morning, the Bank of Canada (BoC) announced another hike to the overnight rate. The central bank justified the move by citing a strong economy and excess demand. Even with the strength, they plan to hit pause “conditionally” on any higher moves to assess […]
Canadian markets have begun discussing rate cuts, and that’s a reason we might not see one this year. BMO Capital Markets wrote to investors over the weekend, outlining their expectations for a rate hike this week. Their forecast currently sees the Bank of Canada (BoC) hitting pause after the next hike, but they warn it […]
Canada’s real estate market got a big boost from overleveraged borrowers, according to its bank regulator. OSFI data shows the share of mortgage borrowers that are overleveraged remains high. Overleveraged borrowers, those with a loan to income ratio of 450% or higher, have begun to taper with higher rates, but still represented 1 in 3 […]
Canadian mortgage payments were seeing double-digit growth before rate increases, as real estate prices surged.
Time for your cheat sheet on this week’s top stories. Canadian Real Estate Canadian Real Estate Prices Have Officially Crashed In 18 Markets Canadian real estate is spiraling lower as 18 markets enter a technical “crash.” Sharp corrections were in Oakville-Milton (-$398,700), Mississauga (-$286,000), and Cambridge (-$249,600). No need to panic—even with this pullback, prices […]
Overstimulated Canadian real estate buyers are no longer opting for variable rate mortgages. Bank of Canada (BoC) data shows mortgage borrowers preferred fixed rates in October. Most new borrowers had been opting for variable terms at the start of the year. That trend is rapidly shifting as rates normalize and fixed rates become cheaper. Canadian […]
Canadian real estate has never exactly been cheap, but it’s rarely this unaffordable. The Bank of Canada (BoC) Housing Affordability Index (HAI) hit a 32-year high in Q3 2022. That means it’s nearly impossible for an average household to buy a home right across the country. The cost of housing has breached an unsustainable level […]
Canada’s real estate downturn will continue next year, warns a credit rating giant. Fitch Ratings released its 2023 forecast calling even lower home prices next year. After 3-decades of strong price growth without correction, affordability has never been worse. When combined with high rates, weak demand is expected in the near-term as home prices adjust. […]
Canadian mortgage debt is slowing, but it’s way past the point of becoming a problem. Bank of Canada (BoC) data shows outstanding mortgage credit slowed in October 2022. However, slow growth is still growth—households now owe the equivalent of the country’s economic output. At this level, debt will pile up much faster than GDP grows, […]
